Investview (“INVU”) Announces First Quarter Fiscal Year 2022 Financial Results

Rhea-AI Summary

Investview, Inc. (OTCQB: INVU) reported its Q1 2022 financial results, showing gross sales of $19.1 million, a 3% increase from last year, and net revenue of $17.7 million, up 4%. iGenius saw significant growth with net revenue of $14.2 million, a 63% rise. However, SAFETek's performance declined, with a 57% drop in net revenue to $3.6 million due to increased Bitcoin mining difficulty and maintenance issues. Net income fell by 52% to $1.4 million. Cash and cash equivalents decreased by 20% to $24.3 million, alongside total assets dropping to $50.4 million.

Positive

• Gross sales increased 3% year-over-year to $19.1 million.
• iGenius revenue surged by 63% to $14.2 million.
• Total stockholders’ equity increased 2% to $29.6 million.

Negative

• Net income decreased by 52% to $1.4 million.
• SAFETek's revenue fell by 57% to $3.6 million due to mining challenges.
• Cash and cash equivalents dropped by 20% to $24.3 million.

Eatontown, NJ, May 23, 2022 (GLOBE NEWSWIRE) -- Investview, Inc. (OTCQB: INVU), a diversified financial technology company that through its subsidiaries and global distribution network provides financial technology, education tools, content, research, and management of digital asset technologies with a focus on Bitcoin mining and the new generation of digital assets,is pleased to announce continued growth and performance in consolidated gross revenue and good net income from operations for the first quarter of the fiscal year 2022.

First Quarter 2022 Financial Highlights

• Gross sales of $19.1 million for the first quarter of 2022 increased 3% compared to the prior-year period.
• Net revenue was $17.7 million, an increase of $0.7 million or 4% from the same period in 2021.
  • iGenius (subsidiary) net revenue in the first quarter of 2022 totaled $14.2 million, an increase of $5.5 million or 63%, over the same period in 2021. The $5.5 million (63%) increase in iGenius revenue was mainly due to significant growth in subscription membership sales driven by continued product enhancements and further expansion into global markets.
  • Our commission payout rate on our iGenius net revenue decreased from 58.4% in the first quarter of 2021 to 52.1% in 2022.
  • SAFETek (subsidiary) net revenue decreased by 57% to $3.6 million for the first quarter of 2022, versus net revenue of $8.3 million for the first quarter of 2021. The decrease resulted from the 27% increase in the average global Bitcoin mining difficulty rate and scheduled Bitcoin miningequipment maintenance and latest-generation upgrades, resulting in a lower hashing rate (approx. 33%), as well as an over 9% decrease in the average value of Bitcoin over the same period in 2021.
• Net income from operations for the three months ended March 31, 2022, was $4.3 million, a decrease of $0.6 million from the $4.9 million recorded in the three months ended March 2021.
• Net income for the three months ended March 31, 2022, decreased by $2.6 million or 52% versus the same period in 2021. This decrease was mainly due to the payoff of debt on two related-party discounted notes.
• Our commission payout rate on our iGenius net revenue decreased by 11% to 52% for the first quarter of 2022, versus 58% for the first quarter of 2021.
• Cash and cash equivalents decreased by $6.1 million or 20% due to the purchase of latest-generation Bitcoin mining equipment, the repurchase of our common shares, and debt repayment, partially offset by $4.1 million in net cash provided by operating activities.
• Net cash provided by operating activities decreased by $1.8 million or 31% from $4.1 million in the three months ended March 2022 versus $5.3 million during the three months ended March 2021.
• Total assets decreased by $1.1 million to $50.4 million, mainly due to depreciation on our miners, repayment of debt, and the repurchase of 43.1 million shares of our common stock, partially offset by $4.1 million in net cash provided by operating activities.
• Total liabilities decreased by $1.8 million to $20.7 million, mainly due to the repayment of debt.
• Total stockholders’ equity increased 2% or $0.7 million to $29.6 million at March 2022 from a stockholders’ equity balance of $28.9 million at December 31, 2021.
• Reduced outstanding shares through the surrender of an aggregate of 193,101,939 shares of our common stock under the Separation Agreements we entered into with two former officers/directors during January 2022.
• We continue to strategically manage our balance sheet (repayment of debt, common stock repurchase & investing in the latest-generation mining equipment, while maintaining a strong liquid cash position).
• Our current ratio remains strong at 2.40.

First Quarter 2022 and Recent Operational Highlights

• iGenius (subsidiary) net revenue in the first quarter of 2022 totaled $14.2 million, an increase of $5.5 million or 63%, over the same period in 2021. The $5.5 million (63%) increase in iGenius revenue was mainly due to increased subscription sales, a result of significant product enhancements and expansion into new markets globally, resulting in substantial growth in our membership.
• SAFETek advanced its mining farm production in Q1 with the addition of 879 latest generation Bitmain T19 (88 TH/s Terahash- One Trillion-hashes-per Second) and S19 (95TH/s Terahash- One Trillion-hashes per Second) miners adding 82 Petahash (.82 EH/s (Exahash- One Quintillion-hashes per Second). The expansion will continue in Q2 with 1,000 latest generation Bitmain T19 (88TH/s) miners adding 88 Petahash (.88 EH/s) to SAFETek's online hash rate.
• Officially launched commercial production of the company's inaugural 2.75-megawatt mobile data center in Q1 2022. The Company expects to complete the production of the second and sale of its first and second 2.75-megawatt mobile data center in Q2 2022.
• Officially launched the Company’s internal miner management network operation center (NOC). The NOC will enable the Company to individually manage tens of thousands of miners across its globally decentralized mining farms, focusing on maximizing farm uptime and performance.
• Augmented the executive team by appointing:
  • Victor M. Oviedo as Chief Executive Officer
  • Jim Bell as President and Chief Operating Officer
  • Myles Gill as Director of Operations.
• Appointed Mr. Victor M. Oviedo to the Company’s board of directors.
• Appointed Mr. David B. Rothrock as Chairman of the Company’s board of directors.

Investview Chief Executive Officer Victor M. Oviedo commented, “We delivered another profitable quarter in Q1 2022, despite the decline in the price of Bitcoin. Gross revenues were up 3% compared to Q1 2021, and net income from operations for the three months ended March 2022 was $4.3 million. While revenue growth and profitability remain our top priority, we are working on multiple fronts to further strengthen our margin profile in support of our operating model, which has delivered robust cash flows over the past four quarters.”

“Opportunities are being evaluated, and others will be assessed in SAFETek's effort to provide the additional infrastructure and mining hardware to reach the Company’s 0.6 EH/s per second goal by the end of 2022. Given the strength of our business model, our track record of efficiently capitalizing on market events, and our current growth trajectory, we are confident that our financial and operational performance will continue to improve as we focus on efficiently increasing our hash rate,” concluded Mr. Oviedo.

"The first quarter of fiscal year 2022 was another solid quarter for Investview,” said Ralph Valvano, Investview Chief Financial Officer. Consolidated gross revenue for the first fiscal quarter was $19.1 million, an increase of 3% over the same quarter from a year earlier. Net income from operations was $4.3 million giving us the ability to manage our balance sheet by investing in new next-generation equipment, paying down debt and repurchasing our common stock. This was driven by organic and strategic business initiatives complementary to the Company's Fintech business building across our verticals. This includes worldwide subscription growth from iGenius, our global distribution network that provides leading-edge financial technologies, services, education tools, content, and research. Our iGenius business segment is trending in a good direction, with gross revenue in the first quarter ending March 31, 2022, of $14.2 million, up 63% or $5.5 million over the same period last year.”

“SAFETek, our Blockchain technology company that provides leading-edge research, development and management of digital asset technologies with a focus on Bitcoin mining and the new generation of digital assets, was challenged to meet projected results with net revenue decreasing by 57% to $3.6 million for the first quarter of 2022, versus net revenue of $8.3 million for the first quarter of 2021. The $4.8 million or 57% decrease in mining revenue was a result of the 27% increase in the average global Bitcoin mining difficulty rate, scheduled equipment maintenance, and next-generation equipment upgrades resulting in a lower hashing rate (approx. 33%) and over a 9% decrease in the average value of Bitcoin over the same period in 2021. As stated above, opportunities are being evaluated, and others will be assessed in SAFETek's effort to provide additional infrastructure and mining hardware to reach the Company’s 0.6 EH/s per second goal by the end of 2022.”

“For the remainder of the year, our primary objectives will be continuing to strengthen our balance sheet, drive revenue growth, diversification of products and services, profitability expansion, and augment the human capital necessary to execute those priorities,” concluded Mr. Valvano.

Note: The numbers included in this release are initial expected results and are un-audited and may differ from numbers reported in our SEC filings due to compliance with US GAAP, and are subject to final review by the Company’s independent auditors. Final audited financial statements will be released in our annual 10-K report.

About Investview, Inc.

Investview, Inc., a Nevada corporation (which we refer to as “we,” “us,” “our,” “Investview,” or the “Company”), a financial technology (FinTech) services company, operates several different businesses, including a Financial Education and Technology business that delivers a series of products and services involving financial education, digital assets and related technology, through a network of independent distributors; a Blockchain Technology and Crypto Mining Products and Services business including leading-edge research, development and FinTech services involving the management of digital asset technologies with a focus on Bitcoin mining and the new generation of digital assets; and a Brokerage and Financial Markets business that is currently in the early stages but plans to expand within the investment management and brokerage industries by commercializing on the proprietary trading platform we acquired in September 2021. For more information on Investview, please visit: www.investview.com.

Forward-Looking Statement

All statements in this release that are not based on historical fact are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies, and expectations, can generally be identified by the use of forward-looking terms such as "believe," "expect," "may,” “should," "could," "seek," "intend," "plan," "goal," "estimate," "anticipate" or other comparable terms. These forward-looking statements are based on Investview’s current beliefs and assumptions and information currently available to Investview and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. More information on potential factors that could affect Investview’s financial results is included from time to time in Investview’s public reports filed with the U.S. Securities and Exchange Commission (the “SEC”), including the Company’s Annual Report on Form 10-K for the year-ended December 31, 2021, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. The forward-looking statements made in this release speak only as of the date of this release, and Investview, Inc. (“INVU”) assumes no obligation to update any such forward-looking statements to reflect actual results or changes in expectations, except as otherwise required by law.

Investor Relations
Contact: Ralph R. Valvano
Phone Number: 732.889.4300
Email: pr@investview.com

FAQ

What were Investview's Q1 2022 earnings results?

Investview reported Q1 2022 gross sales of $19.1 million, a 3% increase, and net revenue of $17.7 million, up 4%.

How did iGenius perform in Q1 2022?

iGenius earned net revenue of $14.2 million in Q1 2022, marking a significant increase of 63% compared to the previous year.

What challenges did SAFETek face in Q1 2022?

SAFETek experienced a 57% decline in net revenue to $3.6 million, attributed to increased Bitcoin mining difficulty and maintenance.

What was the impact on Investview's net income in Q1 2022?

Net income for Q1 2022 decreased by 52% to $1.4 million, primarily due to debt repayment.

What changes were observed in Investview's cash position in Q1 2022?

Cash and cash equivalents decreased by 20% to $24.3 million due to equipment purchases and debt repayment.